Why the Donald is good

Donald J. Trump and the Federal Reserve are both critical factors when it comes to why Bitcoin may do well in the incoming administration.

The Federal Reserve is likely to keep hiking interest rates, which will push up the United States dollar. Trump’s policies involve a massive amount of infrastructure building, which will likely give the dollar an upward edge.

As the Denmark-based Saxo Bank wrote in a report titled - Outrageous Predictions for 2017, “The Trump regime pulls out all the stops and jumps on a fiscal spending binge, further increasing the circa $20 tln of the United States national debt and in the process. This potentially may triple the current United State budget deficit from approximately $600 bln to $1.2-1.8 tln or some 6-10 percent of the United States’ current $18.6 tln economy.”

They add, “This creates a domino effect in emerging markets. China, in particular, leading people globally to look for alternative forms of currencies and payment systems not tied to central banks that have exhausted monetary policies or crony governments that are in full financial repression mode nor transaction systems that are long overdue for a revolution.”

Interestingly Bobby Lee hasn’t missed out on this potential clue either. Look at what he has been retweeting below.

Trump’s budget chief loves Bitcoin

Finally, perhaps even if it is a long shot the thing that can work in favor of Bitcoin - the man in charge of the Trump administration’s budget office, Mick Mulvaney is a Bitcoin enthusiast and the founder of the Congressional Bitcoin Caucus.

“Blockchain technology has the potential to revolutionize the financial services industry, the United States economy and the delivery of government services, and I am proud to be involved with this initiative.”

Mulvaney is also a gold investor and has accused the Federal Reserve of debasing the value of the dollar according to Bloomberg. All in all, it seems that the Trump era is likely to be a godsend for Bitcoin.